Question

5. Why is the Middle East said to have a comparative advantage in

producing oil?
@ Middle East nations are the biggest consumers of oil.
6 Middle East nations can produce oil less expensively.
© Middle East nations export only oil.
@ Middle East nations employ cheap labor.
Score
Done

Answer 1

Option 2 is the correct one

Answer 2

The correct answer is B) Middle East nations can produce oil less expensively.

The Middle East is said to have a comparative advantage in producing oil in that Middle East nations can produce oil less expensively.

There are countries in the Middle East such as Saudi Arabia or Kuwait, that are very wealthy nations due to the production of oil and their capacity to export it to other nations. Other countries such as Iran or Irak are producers of oil but are not as wealthy and powerful as the above-mentioned. Indeed these countries are part of OPEC, the Organization of Petroleum Exporting Countries.